Given the drop in VAT, the increases in Employee and Employer NI contributions and the 2p a litre on all fuels I should think the normal weekly shopping for "staple" foods etc will rise rather than fall. As Wenchy says luxury goods will see a drop but it will be a very small drop. It certainly will not be 2.5% off the list price that's for sure and anyone who thinks it will doesn't understand how VAT works.
It is a fact that the man has borrowed £20 billion and the cost to us when pay back comes round will be £40billion.
Osborne (like him or not) was right. This is what all Labour Governments do and what they will always do. It is just that this time they have fooled enough of the people to enable them to keep on doing it for 11 years and that is why we are in the mess we are. It has sod all to do with the USA and all to do with Gordon and Prudence racking up huge debts before we even got into recession. Look at the massive debts that aren't even on the books. PFI for example. Yet another deferred debt that will have to be paid one day ~ meanwhile the "interest" in the form of rents and maintenance costs are enormous. Our local Police HQ was built as a PFI and cost $35million. In thirty years time the tax payers will have to repay that £35m and in the meantime they are paying £5m per year just to use it. So a building (that we didn't really need anyway) will cost at least £185 million ~ just to give the cops somewhere to hide whilst they eat their donuts. Add to that one example all the schools, hospitals, government offices etc that have been built under PFI and you are looking at a huge debt that is being deliberately kept off the accounts. If you then add to it the debt that we know about we are royally fvcked..
